Good morning, everyone, and welcome to Nemak's First Quarter 2025 earnings webcast. I am Denise Reyes, Nemak's Investor Relations Officer, and I am pleased to host today's call along with Armando Tamez, Nemak CEO, and Alberto Sada, CFO, who are here this morning to discuss the company's business performance and answer any questions that you may have. As a reminder, today's event is being recorded and will be available on the company's Investor Relations website. Armando Tamez, our CEO, will lead off today's call by providing an overview of business and financial highlights for the quarter. Alberto, our CFO, will then discuss our financial results in more detail. Afterwards, we will open for a Q&A session, which participants may join live or submit written questions via the Q&A function. Before we get started, let me remind you that information discussed on today's call may include forward-looking statements regarding the company's future financial performance and prospects, which are subject to risks and uncertainties. Actual results may differ materially, and the company cautions you not to place undue reliance on these forward-looking statements. Nemak undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. I will now turn the call over to Armando Tamez. Thank you, Denise. Hello, everyone, and welcome to Nemak's First Quarter 2025 earnings webcast. We began the year 2025 with positive results, driven by continued operating efficiencies and the carryover effect of improved profitability achieved last year. Despite the volume contraction outlined in our annual guidance, EBITDA for the quarter improved 3% year over year at $149 million, driven by a volume of 9.8 million equivalent units. The company remains steadfast in focusing on its priorities, namely on margin improvement and cash flow generation, which in turn will reduce leverage. Notably, capital expenditure was reduced by 38% compared to the same period last year, as we prioritized the use of existing assets and maintained a strategic focus on new business opportunities. There have been notable developments in industry dynamics within North America, particularly in the trade landscape. Though the situation has been changing rapidly, Nemak remains well-positioned to weather different tariff scenarios, which is favorable contractual and competitive position, the ability to comply with USMCA regional requirements, and its strategic footprint. Contractually, our customers are the importers of record of our components. Therefore, they are responsible for paying tariffs and duties, as stipulated by the commercial terms within our agreements. Additionally, we hold a leading position in the ICE segment, where we provide highly engineered components, and we are the sole supplier in 90% of the contracts we have with our customers. Moreover, our global footprint includes six facilities strategically located near major automotive hubs in the United States. The combination of these elements provides a solid foundation from which we will be able to adapt to the changing environment in the region. In addition to our strong competitive position, we are well-prepared to face various scenarios, including volume and cost fluctuations resulting from changes in international trade conditions. We have a playbook of initiatives to manage volume changes and contain costs, which have proven effective in extraordinary circumstances in the past. These actions focus on adapting fixed costs, minimizing expenses, and change sourcing when possible. We maintain our prudent financial approach, and our liquidity position is robust. Thanks to the liability management efforts undertaken over the last years, our debt profile has been improved with no major maturities until 2028. Our cash position at the end of this first quarter was $299 million, and we have more than $400 million in fully available committed credit lines. Altogether, this provides Nemak with financial flexibility and adequate liquidity to navigate potential downside scenarios. Moving on to the commercial front, during the quarter, we secured new business worth approximately $90 million in annual revenue, with 90% corresponding to the ICE powertrain segment and the remaining 10% to the mobility structure and chassis application segment. Additionally, we extended several contracts in the ICE segment in response to the customer requesting extensions beyond 2030 and, in some cases, until 2035. This dynamic is relatively new and reflects OEM's decision to maintain their traditional internal combustion engine offering for a longer period. This is positive for Nemak, as it enables us to leverage existing capacity and maximize cash flow generation. We will continue supporting our customers in their strategies to adapt to changing consumer preferences. During the quarter, we began production of an aluminum housing for a high-end vehicle. This important project uses existing capacity at one of our facilities in Germany, and marks the first EV motor housing to be produced with our patented Rotacast technology. The vehicle's engine system includes four high-complex castings provided by Nemak, showcasing our strong leading position in the automotive industry. On the innovation front, we are dedicating resources to enhance efficiency in the high-pressure die casting process. Our team is at the forefront of developing cutting-edge initiatives that not only improve the existing processes but also align seamlessly with our cost improvement strategies. In parallel, we are significantly expanding our additive manufacturing capabilities, which have proven to be valuable in developing new products. We recently integrated Wire Arc technology, enabling the creation of aluminum functional prototypes. This important upgrade over traditional prototypes will accelerate development time and enhance overall quality. These efforts underscored Nemak's commitment to maintaining a competitive edge in the industry and delivering value to our stakeholders. Moving on to our ESG agenda, I am pleased to share that we are exceeding our goals and our commitment to reduce emissions as part of the Science Based Targets initiative we subscribed to in 2019. Nemak plans to reduce Scope 1 direct emissions and Scope 2 indirect emissions by 28% by 2030, with an intermediate 18% reduction by 2026. By the end of 2024, we have already achieved a 22% reduction, surpassing our intermediate target. Finally, we are committed to reducing Scope 3 emissions by 14% by 2030, and we have already achieved a 10% reduction. Moreover, we have surpassed our goal of 25% renewable electricity purchase by 2025 by powering 30% of Nemak's electricity consumption with renewable resources in 2024. Finally, in ESG initiatives, Nemak's A-minus rating from the Carbon Disclosure Project was reaffirmed for the second consecutive year. This improvement from management to leadership level in climate strategy implementation further highlights Nemak's commitment to help mitigate climate change. We intend to continue with these positive trends going forward. I believe these achievements reflect our unwavering dedication to sustainability and our proactive approach to environmental responsibility. This concludes my remarks. Thanks for your attention, and I will now hand the call over to Alberto. Thank you, Armando. Good morning, everyone. I will begin with an overview of light vehicle sales and production for the main regions where we operate, followed by a detailed discussion of our consolidated and regional financial results for the first quarter of 2025. Overall, we had a solid start of the year. Improved margins helped offset the impact of lower volumes in line with our guidance. On a year-over-year basis, cash flow generation was positive, supported by stronger results, lower capital expenditures, and improved working capital, key drivers for our ongoing leveraging strategy. Turning on to the auto industry, U.S. light vehicle sales reached 16.5 million units on a SAR basis, representing a 7% increase year-over-year. This growth was partly driven by pull-ahead purchases in anticipation of potential price increases related to tariffs. In contrast, North America light vehicle production declined 7% year-over-year to 3.7 million units, as OEMs continued to implement inventory management strategies. In Europe, light vehicle sales declined 5% year-over-year to 15.6 million units on a SAR basis, impacted by affordability constraints and geopolitical uncertainty weighing on consumer confidence. Similarly, light vehicle production in the region fell 12% year-over-year, reflecting weaker export activity to China and the U.S., as well as the effects of increasing emission regulations. In China, light vehicle sales reached a SAR of 24.7 million units, up 15% from the same period of last year, driven by strong domestic demand, particularly for battery electric and plug-in hybrid vehicles. Production rose 6% year-over-year to 6.6 million units, supported by robust internal consumption. In South America, light vehicle sales increased 5% year-over-year to 2.3 million units SAR, reflecting favorable macroeconomic conditions. In Brazil, production grew 5% to 500,000 units, supported by healthy consumer demand. Turning to our financial results, in the first quarter, Nemak's volume totaled 9.8 million equivalent units, representing a 7% decline year-over-year. This was mainly attributed to reduced vehicle production in Europe and North America, driven by inventory management efforts, lower export activity, and softer production of EV components. Revenue was $1.2 billion, remaining stable on a year-over-year basis, supported by product repricing and favorable exchange rate fluctuation in spite of lower volume. EBITDA was $149 million, up 3% compared to the same period of last year, reflecting operating efficiencies, improved commercial terms, and favorable foreign exchange effects, all of which helped offset the impact of lower volumes. As a result, EBITDA per equivalent unit rose 11% year-over-year to $15.2, up from $13.7, in line with our full-year guidance and highlighting continued progress in profitability improvements. Operating income stood at $50 million, 9% lower year-over-year, as the increase in EBITDA was more than offset by a $5 million non-cash impairment related to non-operating assets. In addition, net result was $16 million loss, affected by the non-cash effect of currency exchange from our euro-denominated liabilities, partially offset by lower income taxes and lower financing expenses. Year-over-year, net income compares to $25 million. Absent the effect from foreign exchange fluctuation and impairments, net income would be $18 million. Moving to our balance sheet, by the end of the quarter, Nemak's net debt was $1.6 billion, 5% below the same period of last year on the back of positive cash flow generation. As a result, the net debt to EBITDA ratio was 2.5 times by the end of the quarter. Additionally, the interest coverage ratio was 5.0 times, compared to 2.8 times and 4.6 times, respectively, in the same period of last year. Cash flow generation remains on top of our strategic priorities. To support this, we continue optimizing capital investments, streamlining our working capital requirements, and improving our operating results. Capital expenditure in the quarter amounted to $64 million, representing a 38% reduction year-over-year on the back of the reutilization of existing assets and selective order intake. Related to our debt position, we do not have any major maturities this year due to the liability management performed in 2024. This provides us with additional financial flexibility. Moving to our regional results, during the first quarter, revenue in North America increased 4% year-over-year to $641 million, despite lower volumes, as a result of higher aluminum prices, product repricing, and favorable product mix. In turn, EBITDA was $69 million, 17% above year-over-year basis. This was favored by operating efficiencies, improved commercial terms, and favorable foreign exchange effects. In Europe, revenue decreased 7% year-over-year to $413 million due to lower volumes and mix, partially offset by product repricing. In turn, EBITDA in the region was $60 million, 14% lower compared to the same period of last year due to lower volume and high comparison basis related to commercial negotiations. In the rest of the world, revenue increased 6% year-over-year, totaling $158 million, primarily due to higher volume and improved product mix. EBITDA in the region increased 22% to $21 million, benefited from volume, product mix, and sustained operating efficiencies. As we navigate the rapidly evolving economic landscape, our commitment to creating value remains unwavering. By emphasizing efficiency, resilience, and prioritizing cash flow generation, we are strategically positioning ourselves for long-term success. Despite the challenges posed by lower volumes in certain regions, our focus on operating efficiencies, streamlining investments, and reducing our leverage enables us to remain competitive and poised for sustainable growth. As highlighted by Armando, we remain observant on the potential effect of tariffs on the industry demand and therefore our volumes. We're well prepared to manage our cost structure in the potential case where volumes are affected by these effects. Thank you for your attention. Thank you, Alberto. We are now ready to move on to the Q&A portion of the event. If you would like to ask your question live, please press the raise hand button at the bottom of your screen. When it's your turn to ask a question, you will be granted permission to speak. Questions will be addressed in the order that they are received, calling the name of the next person on the line. You may also place a written question using the Q&A function also located at the bottom of your screen, and questions will be addressed in the order that they are received. We will now open the floor for questions. Our first question is from Stefan Styk from Barclays. Stefan, please proceed with your question. Hi, everyone. This is Stefan Styk with Barclays. Thanks for the call today, and congrats on the results. I have two sets of questions. The first is on CapEx. I'm just wondering why there's a discrepancy between the $64 million you reported on the press release and your cash flow statement. Is there some sort of timing issue here on cash disbursements? Looking at the run rate on CapEx, it looks like you're coming in below guidance for the year. Wondering if there's some cadence effect or if you're thinking of potentially undershooting the guidance you previously gave. Yes, thanks for your question, Stefan. This is Alberto. Sometimes when there are differences on the capital expenditures that are reported versus the cash flow, and that's basically because of payment terms. Normally you would see a portion of those capital expenditures booked as pending to be paid on working capital, and that's the main reason why you see a slightly different figure. Normally you would see a small amount. This year was a little bit higher. Related to the full-year CapEx guidance, as we have been highlighting, for us it's very important to maintain the CapEx figures as low as possible. Within this first quarter, it's mostly calendarization of the capital expenditures that we have. Normally they don't necessarily follow an even amount on a quarter-by-quarter basis. There's a little bit of scheduling. In this case, it's a little bit higher towards the later part of the year. Okay, great. That's helpful. In your cost efforts, you called out some benefits you saw during the quarter. Are these a continuation of things you undertook in 2024, or are there new measures that you're taking? In a tariff situation, what specifically could you do to convert some of your fixed costs to variable? Can you quantify the impact you'd have on cost cutting in various volume decline scenarios? Thank you. Yes, Stefan, let me see if I understood correctly the first part of the question. You're saying to give a little more details on the cost adjustments that we have done on the quarter? Yeah, are those just carryovers from last year, or were there some more efforts that you did this quarter? Yeah, normally, I mean, we continue working on efficiencies, and those are, let's say, an ongoing effort all the time. So we always have a little bit of room here and there. So we saw some progress already this year versus where we were operating last year. Okay. In the case of tariffs, just trying to understand what you could do on the cost structure there if you see a volume decline? Yeah, absolutely. As you know, this is an industry that has been, along the years, subject to a number of external effects that have translated into volume volatility. I mean, we saw things back in 2008 when we saw the volume declines associated with the financial crisis at the time. We had COVID, and we had semiconductors and all those things. As a company, we have done our work in terms of establishing a toolkit to adjust our cost structure whenever we see volume fluctuations. We work intensely to make sure that we can realign that cost structure. Our aim is to have our cost structure almost as variable as possible to volume. There are certain limitations, but we try to do our best in adjusting quickly when we have such changes. We have that same toolkit in place to adjust cost structure, particularly on labor and manufacturing costs, if we would see any type of steep volatility on the volume. So far, that has not been the case. Okay, thanks. Our next question is from Alfonso Salazar from Scotiabank. Alfonso, please proceed with your question. Hi, can you hear me? Yes, Alfonso, go ahead. Excellent. Thank you. I have two questions. One follow-up on the CapEx. If I understand correctly, then the mismatch between the CapEx figure in your press release and the one in your financials should be reverted, or let me say the difference should be included in the coming quarters. Is this correct? Yes, Alfonso, it is part of that. It's as an account table. That should, once it's paid, that should be booked back as you will see that as a CapEx cash flow line. Exactly, exactly. Okay, good. The second question that I have, if you can provide some outlook, you do talk about these front-loaded sales of vehicles in Q1 in North America, and I guess it's the U.S. specifically because of tariffs. What is the outlook for the coming quarters as you see it today with the information you have? It would be very interesting to hear what you see in North America, in Europe, and the rest of the world separately. What is the outlook for each of the regions where you operate? Yeah, thank you, Alfonso. This is Armando. We saw, especially during the first quarter, as you're indicating in North America, an increase in demand. I think our customers, to some extent, were trying to build some inventory to potentially protect for tariffs. Actually, the month of March had a SAR of close to 18 million, which is above the 16 million vehicles that are expected to be sold in the U.S. for this year, according to most of the analysts that are following the industry. We have been in very close contact with all our customers, not only in North America, but also in Europe and Asia. So far, I think our customers remain with the same, let's say, production targets for the year. Certainly, that could be varied depending on how the tariff evolves. I think it's a little bit difficult for us to assess if there is going to be any major deviations. So far, we continue, for instance, during the month of April with the same pace as we had before. That, of course, could be changed, but so far, we have not seen any change in customer requests for volume. Our next question is from Emilio Fuentes from GBM. Emilio, please proceed with your question. Hi, thank you for taking my question. I just wanted to know if you could give us a little more color on your cost structure and the operating efficiencies you've seen. Where have you found these opportunities within your structure, and how much is there left to exploit on this? Thank you. Thank you, Emilio. Thanks for the question. Yeah, certainly, as we have, and this has been something that we have constantly, as I said before, tapped on. We always test ourselves versus our own internal and external sources to check how we're doing in terms of cost. We're always striving to improve efficiency overall. The major cost contributors on the efficiency side come from the labor side, as well as the manufacturing expenses. Those are the ones that we are working on, on two fronts. The first one is to realign that cost structure to the volume adjustments that we have guided for. The second one is around efficiencies. Those efficiencies have to do with directly how we're operating, and they are tied in some cases with a little bit of changes in the way we operate, as well as potential improvements in terms of productivity. is also work on the discretionary spending, though the opportunity there is smaller. Certainly, we work ourselves towards containing that discretionary spending as much as we can, as well as SG&A. Those would be the ones. We still have plenty of room on those two fronts, primarily re-aligning the cost structure to the new volumes, as well as the productivity that we still see ourselves with opportunity based on our benchmark work. Thank you. Very clear. Our next question is from Diego Espinoza from BTG Pactual. Diego, please proceed with your question. Good afternoon. Thank you for taking my questions. I just want to have, if you can give me more color about your target capital structure, what is the level of leverage that you are pointing out to the end of the year, and especially after that, and what levels are you feeling comfortable right now? You are on 2.5. If you can give us more color on that. Thanks for the question, Diego. Absolutely. As we have highlighted, we are targeting to continue improving the leverage of the company. Last year, we ended up with a level of 2.4 times on a net debt-to-EBITDA basis. Mid-term to long-term, our target is to achieve two times or lower on a net debt-to-EBITDA basis. We should be achieving that sometime next year. By the end of this year, we should be at the level slightly lower potentially than how we ended in 2024. That is going to be a result of the different initiatives we have to improve our cash generation, as well as to continue improving our financial results. Perfect. Thank you. Thank you, Alberto. We have a question from Jonathan Koutras from JPMorgan. Jonathan, please proceed with your question. Yeah, thank you, Denise. Good morning, everyone. Congrats on the quarter. I just wanted to revert back to the SG&A that Alberto mentioned. Came in particularly lean this quarter at around $80 million, even though top line was somewhat flattish. I just want to understand how recurring this level of below 7% of top line, let's say, is going forward. And if we should expect it to revert back to, let's say, previous quarter levels of closer to the $90 million, if. Thank you. Thanks, Jonathan. No, as I highlighted before, I mean, we continue with the efforts to improve all the cost structure, including the SG&A. At the current level, we think we should be able to sustain that going forward. There may be some extraordinary items here and there, but I would say that on a yearly basis, our aim is to be somewhere around that level. We should not be seeing major return of the previous levels that we were operating before. Very clear. Thank you. Thank you, Alberto. We now have a question from Gerardo Campos from Signum Research. Gerardo, please proceed with your question. Gerardo Campos, you can proceed with your question. Hi, can you hear me? Yes. Yes, Gerardo. Thank you. Hi, everyone. Thank you for taking my question. I want to know if you can give me more color in which countries are driving the remarkable results in the rest of the world, and what is the future potential in those geographies? Gerardo, let me see if I understood correctly. You want to get more color on the nature of our results in the rest of the world region? Yes. Also, what is the potential in those regions? Yeah, certainly. The rest of the world for us is, as you know, it's South America as well as China. I think those two regions have been operating in a very stable way. We're seeing in both regions, in general, favorable macroeconomic environment, which is driving positive volume developments. I would say that we are, again, very pleased with the results in those regions. We're seeing consistent volume improvements, as well as very stable operations, which drive favorable net results. We should be seeing that type of behavior in the whole year. Perfect. I also have another question. Considering the geopolitical factors, are you maintaining your guidance, or do you plan to adjust it either upwards or downwards? Yeah, thank you, Gerardo. We are continuing with our guidance. We have no indication of any volume change. Our guidance that we set in January is still valid. Thank you. Thank you, Armando. We have a question from Alejandro Azar from GBM. Alejandro, please proceed with your question. Hi, thank you, Denise. And good morning, Alberto, Armando. My question is, what are you looking in terms of how the OEMs manage the electric vehicle market, the power grid market, the releases? If I'm not mistaken, you sold around $500 million last year on the EV segment. What changes are you seeing in terms of how platforms are rearranged for the next 12-18 months? And how should we see the EVs segment grow in, let's say, the next 12-24 months? Thank you. Yeah, thank you, Alex, for your question. What we are seeing, especially in North America and Europe as well, is that the EV growth that was expected is not materializing as customers were expecting. We have already indicated that customers, especially in North America, are to some extent going back to ICE, internal combustion engine, as well as hybrids. I think we are repurposing some of our plans to produce some of the castings required to produce both ICEs and as well as hybrid components. We see that, again, gaining a lot of traction, especially in the U.S. and probably that will continue for the next following years. In Europe, we also see a similar approach from the customers that to some extent, the penetration of EVs is not as high as everybody anticipated. The growth is marginal. In China, certainly that is a different market, and it continues with certain growth on the EV side. Based on that, Alex, we are well prepared. We have the flexibility to produce the three different types of proportion needed by customers. ICE, as you know, this is our core business. We are also, again, ready to produce. As we speak, we are already producing a lot of components for Hybrid Vehicles. Also, we have the capacity and capabilities to respond to EV components. I think we are working in parallel to support customers as the demand of the different customers is required. Okay, Armando. One more if I may. Are you guys seeing in Europe overcapacity in? I want to ask more on if you are able to rationalize capacity, perhaps close one plant in order to transfer the utilization to another one and be more productive. Is that something that you could easily do? I understand it's tough to do given supply chains. How are you managing that overcapacity in Europe? That would be my second question. Thank you. Thank you, Alex. Good question. Certainly, Nemak is always looking at how we can improve our footprint and if there is any opportunity for consolidation. So far, what I can tell you in the short term, we do not see any need to close any of our facilities in Europe for the time being. Certainly, we are doing some analysis, and it may be required mid-term, long-term to rationalize some of our facilities. Certainly, once we are ready to proceed, we will share those with this group. At this point in time, not in the short term, we do not need that. I think our facilities are with the proper scale as needed by the customers. We have not seen any significant volume reduction that put us in a position to close any of our European facilities. Okay. Thank you. Thank you, Armando. One more, if I may. I do not know if it was in the fourth quarter of last year, but on your press release when you showed production volumes and then Nemak customer production volumes, we saw a dramatic increase in the share. If you want a new client, you used to have a 60% share, and now it is closer to 80-90%. Can you elaborate more on that? Is that a new client that you are serving, and that is why you increased that share? Yeah, thank you, Alex, for the question. Certainly, we are gaining traction and also new customers, especially in the heavy-duty vehicle market. As we have already indicated, this is a new segment for us, and we have been very successful, especially on the EV side. Again, that's something that we see very promising because, for instance, new regulations in Europe required heavy trucks to be with zero emissions. We are already with several contracts to produce battery housings for this type of vehicles. The beauty of this is that they required from 15-20 battery trays per commercial vehicle. Yes, that's part of the increase in revenues in Europe. Those are new customers. Certainly, we are targeting additional potential targets. We are already, for instance, in conversations with them at the engineering, advanced engineering level. We are very optimistic that we will be, again, gaining additional orders with these new customers. Thank you. Thank you, Armando. I have no further questions. Our next question is from Ángel de la Hoz from Alta Capital. Ángel, please proceed with your question. Hello, everybody, and thank you for the results. I just have a quick question. You previously reported that you guys approved MXN 1 billion of share buyback for this year. I was just wondering if you guys have any initiatives or something to fund buyback or fund repurchases, or have you ever thought about it? Yeah, thank you, Ángel. Certainly, the entire management and our board, we truly believe that our stock price is undervalued significantly. Based on that, we are committed to continue repurchasing some of our stock. At this point in time, we do not see, for instance, on the bond side to repurchase, but we are open if, let's say, an opportunity comes at the right price. Certainly, one of our elements, as Alberto indicated, is to reduce our leverage ratio, and that is one of our main objectives that we have in our company to go as soon as possible to debt to net EBITDA below two times. That is also an important target that we are following. Great. Thank you. Thank you. Thank you, Armando. There are no more live questions, so we will move on to the written questions. The first question is from Vanessa Quiroga from Eternal Capital Group. What is your view on how your client's competitiveness will evolve in the short and medium term? What tariff scenario would be the best case for Nemak's clients in the different regions where you operate? Thank you, Vanessa. Thank you for your question. We do not see a major shift, especially in the short and medium term, from the different customers. I think customers are trying to assess the potential impact of tariffs. As everybody knows, this is changing very, very rapidly. Almost every day, there is new information about tariffs. I think our customers are trying to first assess and understand what is going to be the tariff scenario. So far, to our knowledge, they do not have major changes. Probably with the exception of a few moves from some of the OEMs based in North America that are trying to increase some of the capacity, especially on assembly vehicles and maybe other powertrain plants in the United States when they have open capacity. We do not see any major shift, at least not in the short, medium term. I think, as I indicated, since this is very dynamic, our customers are trying to understand and assess what are going to be the tariffs. It is changing very, very rapidly. Thank you, Armando. The next question is from Declan Hanlon from Santander. Thank you for the call. Can you give us a sense of how your customers, particularly the U.S. OEMs, are managing operations against the backdrop of the tariffs uncertainty? How are you evaluating the potential need for shifting the sources of production to minimize incremental costs? While your contract shields Nemak from the direct tariff imposition, your customers may obviously need to reevaluate sourcing, location, etc. I realize this is all very uncertain. However, your bonds are being negatively impacted by these potential scenarios, and any color you can provide here is helpful. Yeah. Yeah, thank you, Declan. As I have indicated in the previous question, our customers are trying to assess the tariff scenario. So far, to our knowledge, they have not been hit, especially for the ones that are located in North America so far. As I indicated, we do not see major changes, but the customers certainly are assessing, and they have asked us, for instance, we have, as we have already indicated, six manufacturing facilities in the U.S. Some of our customers are trying to understand, for instance, what will be the cost difference for us moving some of the products that we are manufacturing in some of our plants in Mexico to the U.S. Also, we share this, that Nemak will only move production from Mexico to the U.S. if that makes economic sense. In other words, if it is with the right profitability, and certainly, we will be very sensitive about any additional CapEx needed. Those are the main elements. You could understand that this is very dynamic. Almost every day, the U.S. administration is making changes in the tariffs. So far, we have not been hit because our customers are importers of record. They are buying the parts in our facilities, and they are exporting the parts. Also, very important to tell you that we are USMCA compliant. We have a content of more than 75% in all the products that we produce in our facilities. Thank you, Armando. The next question is from Iñigo Cossio from Kapitalia. There are two questions, and the first one reads, "Given that market demand in Europe appears to be slowing at a faster rate, combined with the region's more ambitious targets for phasing out internal combustion engine vehicles compared to the U.S. are there any strategic plans in place for European facilities over the coming years? Have you considered repurposing production capacity toward other aluminum applications, such as components for hybrids or fully electric vehicles, or diversifying into other product segments? Yeah, thank you, Iñigo. I think we already responded to some extent to that question that we are already, for instance, looking for new opportunities in the different markets, such as the heavy-duty vehicle production, and we have been already successful. As we speak, also, we are already producing in our facilities, not only in Europe, but also in North America, components for Hybrid Vehicles as well as IC. We are seeing, as I have already indicated, that the demand for ICE is getting stronger. Certainly, the projections that some customers in Europe had to get rid of the ICE engine by 2035, potentially that will be extended. They are working as well in other applications and also improve emissions and also developing synthetic fuels so that they can continue with ICE because, again, this is something that the customers in Europe, as well as in North America, prefer over the EV side. Thank you, Armando. The next question is from William Mansfield from Polus Capital. If North Americans are the clients from 16.5 to 15 million round rate as a result of tariff-related price increases or recession, how would that affect your EBITDA on an annual basis? Yes. Thanks for the question, William. Certainly, as indicated, we are following the take rates and the production schedules from our customers to react in case there are any adjustments to the level of production associated with sales. At this point, it's really hard to give a precise answer on the potential impact on EBITDA. What I can tell you is that, as I said before, we would adjust our cost structure as quickly as we can to deal with any potential fluctuations. So far, we are not receiving any major change from any customer. We are producing as what we have. Again, attentive to any type of adjustment that the productions may have to adjust our cost structure. Thank you, Alberto. We have another live question. The question is from Ernesto Castillo from Pensionissste. Ernesto, please proceed with your question.